MREIT gets SEC nod for P27-B asset infusion
MREIT Inc. has secured regulatory approval for its P27-billion “Wave 5” asset infusion, paving the way for its largest acquisition to date and a major diversification beyond office properties.
The real estate investment trust of Megaworld Corp. said on Tuesday the Securities and Exchange Commission (SEC) approved the property-for-share swap within the third quarter.
Once completed, the transaction will lift MREIT’s assets under management to about P122 billion.
Combined with its P16.2-billion Wave 4 transaction completed in the first quarter, MREIT’s asset infusions this year will exceed P43 billion.
The Wave 5 assets will contribute to MREIT’s income retroactively from July 1, 2026. The company said the transaction was structured to be materially accretive to dividends per share.
“Wave 5 will add approximately 303,900 square meters (sq m) of gross leasable area (GLA) to MREIT’s portfolio. Upon completion, MREIT’s portfolio will exceed 950,000 sq m of GLA,” the company said.
The deal will also significantly diversify the REIT’s portfolio, which is currently more than 95 percent office by GLA.
Following the acquisition, offices will account for about 77 percent of the portfolio, while retail and hotel assets will make up 20 percent and 3 percent, respectively.
MREIT’s presence will also expand to nine Megaworld townships from five.
The portfolio includes five lifestyle malls—Festive Walk Mall, Lucky Chinatown Mall, Venice Grand Canal Mall, Eastwood Mall and Southwoods Mall—with a combined GLA of about 160,200 sq m.
Also included is the 737-room Holiday Inn Express Manila Newport City and six office properties—Science Hub Tower 2, Venice Corporate Center, Six West Campus, One Paseo, Global One and Horizon Center.
The assets have a blended occupancy rate of 91 percent and a weighted average lease expiry of 5.3 years. They were valued at a blended effective cap rate of 7.8 percent.
Shares for the transaction were priced at P16.50 each, an 18.6-percent premium to MREIT’s volume-weighted average price over the 30 days before board approval.
MREIT said the premium would minimize dilution to existing shareholders and support dividend-per-share accretion.
MREIT is already preparing Wave 6, which is expected to include select “crown-jewel” assets from Megaworld’s portfolio in Uptown Bonifacio.
The company expects its portfolio to surpass its 1 million-sq m GLA target by 2027.
